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[quote=Anonymous][quote=Anonymous][quote=Anonymous]if you (a) can't qualify for a loan with a second trust and/or (b) needed that much help to come up with a downpayment, you should have never been putting that offer in the first place...  how did you expect to pay your family back? if the bank sure thinks you can't afford anymore in monthly payments, than you probably cannot.[/quote]

This happens frequently (family loan part of the down payment).  The reason it isn't an issue is that there is no official loan or loan payment.  If the borrower has cash problems, the mortgage is the only official loan and hence has priority.  Even in a bankruptcy, a family loan with no documentation will have no standing until after all official creditors are paid off.  So, the mortgage holder has more leverage than such a loan. [/quote]

A little help from parents is 1 thing, but needing 10% to get a downpayment together when most banks would lend you that 10 on a second trust is telling. Yes, the bank will want to see the source of the money, and the irs will surely want to see the gift tax paid on such a large gift as well (because that's what it is, a gift, not a loan). I guess mommy and daddy will be paying for all the repairs and maintenance on the house as well. I smell some entitlement generation here trying to buy a house that is way out of their price range. Sadly, the seller gets screwed and loses valuable time and money.[/quote]

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